The BSE Sensex today fell 136 points to 17,121.62 today as investors sold stocks ahead of settlement in the derivative contracts,amid lingering concerns over the government move to bring in the net overseas buyers avoiding taxes and weakness in global markets.
Besides,the rupee’s falling to a 2-month low further dampened the market mood.
Eleven of the 13 sectoral indices ended in the red zone,as consumer durables,banking,PSUs,realty,oil & gas and power faced strong selling pressure.
After opening weak,the BSE 30-scrip Sensex remained in the negative terrain and closed at 17,121.62,down 135.74 points or 0.79 per cent. Yesterday,it had gained by 204.53 points or 1.20 per cent.
The NSE 50-share index Nifty today declined 48.40 points or 0.92 per cent to finish below the 5,200 mark at 5,194.75.
Markets gained yesterday on reports that the government has said that the new tax avoidance rules aim to check tax avoidance through complicated deals,and are not directed against participatory notes (P-notes) through with funds buy on behalf of overseas investors.
Analysts said,however,that some concerns remained,as investors squared positions ahead of tomorrow’s settlement in this month’s derivative contracts — the last this fiscal.
Globally,key indices in China,Japan,Hong Kong,Singapore and South Korea eased by up to 2.65 per cent. Taiwan was up marginally.
“Sensex dropped amid concerns that the new rules to prevent tax avoidance would target foreign institutional investors holding local equities as well as on concerns of the rupee falling to a two-month low.
“Moreover,global markets witnessed sharp declines. Traders were cautious on the market on lack of clarity visibility on GAAR and ahead of March expiry,” Rikesh Parikh,VP Equities,Motilal Oswal Securities said.
In Europe,key indices were down by up to 0.29 per cent.
Meanwhile,Foreign Institutional Investors (FIIs) bought Indian equities worth Rs 42.99 crore yesterday as per provisional data from the stock exchanges.
Of the 30 Sensex scrips,21 stocks finished with losses.
Hindalco was down 2.75 per cent,followed by ONGC (2.75 pc),Sterlite Ind (2.32 pc),SBI (2.28 pc),ICICI Bank (1.93 pc),NTPC (1.61 pc),Bajaj Auto (1.42 pc),Sun Pharma (1.29 pc),Infosys (1.18 pc),BHEL (1.17 pc),Jindal Steel (1.13 pc) and HDFC Bank (0.92 pc).
However,Tata Steel shot up 2.02 per cent and Maruti Suzuki 0.98 per cent.
Among the sectoral indices,the BSE-Consumer Goods fell by 3.32 pc,followed by Bankex – 1.73 pc,PSU – 1.58 pc,Realty – 1.57 pc,Oil&Gas – 1.23 pc and Power – 1.11 pc.
Small-cap and Midcap indices were also down 1.08 pc and 0.87 pc respectively on sustained selling pressure from retail investors.
The total market breadth was negative as 2,030 stocks closed with losses,while 889 stocks ended with gains.
The total turnover improved to Rs 3,685.71 crore from Rs 2,906.29 crore yesterday.